Where the Shoppers Go: A Shifting Centre

It’s a curious thing to observe, this quiet movement of people. For decades, the primary pitches on our high streets were sacrosanct. They commanded the highest rents, attracted the largest brands, and buzz was almost guaranteed. Now, the certainty of that prime location seems less absolute. We’re seeing a diffusion, a gentle but persistent outward creep of consumer traffic.

Take, for instance, the evolution of many larger towns. Historically, the heart was undeniable. But as car use became ubiquitous, and the cost of maintaining older, multi-storey retail premises grew, the draw of out-of-town retail parks began to exert its influence. Free parking, easy access, modern units – these factors chipped away at the high street's dominance.

What's often left behind in the town centre are the older, deeper units. These can be expensive to heat, difficult to adapt, and their repair obligations onerous. For a national chain looking for efficiency, a purpose-built unit on the edge of town with a large car park is often a more attractive proposition than a listed building on a pedestrianised street requiring significant capital expenditure.

The Pull of Convenience and Cost

This isn't about online shopping, not directly anyway. It’s about the physical movement of people and the decisions made by retailers based on economic viability. When a tenant is reviewing a lease renewal, or considering a new location, the rent payable is only one factor. The total cost of occupation – including service charges, repair liabilities, and the projected sales from a given footfall – is what truly matters.

And if the footfall, the sheer volume of potential customers, is now shifting towards the edge of town where operating costs might also be lower due to newer, more efficient buildings, then the prime high street pitch starts to lose its lustre. The land ownership patterns also play a part here; out-of-town parks are often under single ownership, simplifying management and development.

We often talk about high streets needing to 'diversify', to become 'experiences'. And while that’s true, it’s also a response to this drift. If the traditional retail magnet is weakening, then something else has to pull people in. Cafes, restaurants, services, residential conversions – these become necessary anchors, not just desirable additions.

The challenge for landlords of prime high street blocks is significant. How do you re-anchor a location that no longer has the same inherent pull? Discounting rents helps, but it doesn't solve the underlying problem of where the crowds are choosing to go. It’s a slow recalibration, the full implications of which we're still grappling with, street by street, town by town.